Two Cheshire councils warn of budget overspends

Warrington Council said there are "sustained funding pressures" in children's social care.

Two councils in Cheshire say they are expecting to spill over their budgets this year, particularly due to rising costs of children's social care.

Warrington Council said it was facing a £12.6m overspend in a report to councillors.

And Cheshire West and Chester Council is set to be £10.8m over budget.

Both authorities have cited cost pressures from children's social care and say they are working to find savings.

The likely overspends were revealed as the two councils published their first quarter financial forecasts.

It comes after Birmingham City Council effectively declared itself bankrupt earlier this week, while a BBC investigation found black holes in council budgets are continuing to rise.

Warrington Council said it was "increasingly difficult" to achieve a balanced budget, with children's services costs expected to be about 29% over budget.

Warrington Council said the pandemic, cost of living and inflation had led to an increase in the cost of running services along with an increase in the number of children living in poverty.

Cheshire West and Chester Council's leader said "difficult decisions" needed to be made.

Sarah Hall, cabinet member for children's services, said: "There are not enough placements [for children] of the right kind, in the right places, and affordability of suitable placements has increased significantly."

She added that the council was also expecting to spend £2.3m on care leavers who need to remain in their current placements because of a lack of other housing options.

Reviews of overspending are currently taking place.

Possible options include bringing forward savings planned for next year, looking at further sales of assets and increasing discretionary fees and charges.

Neighbouring Cheshire West and Chester Council said its children's services are set to have a £12.4m overspend.

It said the number of children in care has increased "significantly" since its budget was set, from 565 to 594.

It added there has also been more high-cost residential placements, with 15 placements currently costing more than £10,000 per week.

The council said it was going to bring in a range of savings measures, including delaying filling vacancies, reviewing agency and consultancy spending, and reviewing discretionary services.

Council leader Louise Gittins said: "This serious challenge is being faced by every council in the country. Recent headlines show that many councils are struggling to meet these needs within the finances they have available, and all are having to make difficult decisions."

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